Luxury Goods Market Size, Share & Trends Analysis Report By Product (Apparel, Watches, Jewelry, Handbags, Perfumes & Cosmetics, Footwear, Others), By End Use (Men, Women), By Region, And Segment Forecasts, 2025 - 2030

Luxury Goods Market Summary

Furthermore, younger consumers, such as millennials and Generation Z, are increasingly entering the luxury market, driving the demand for more contemporary and experiential luxury offerings. The rise of social media and influencer marketing has greatly impacted the visibility and desirability of luxury products.

The increasing influencer marketing & social media influence are anticipated to propel the market growth. This can be attributed to influencer marketing becoming a powerful tool for luxury brands to reach a wider audience and connect with consumers through social media platforms. Collaborations with influencers and celebrities help create buzz around new collections and increase brand visibility among younger demographics. For instance, in May 2025, Givenchy collaborated with the renowned Chinese influencer Tao Liang, also known as Mr. Bags, to produce an exclusive limited-edition version of the popular Voyou bag. The special bag was released solely in China through Mr. Bags’ WeChat mini-program store.

The noticeable shift towards experiential luxury is driving the luxury products market. This shift is driven by changing consumer preferences, particularly among millennials and Gen Z consumers, who are increasingly valuing experiences over material possessions. As a result, luxury brands are adapting their strategies to cater to this trend by focusing on creating immersive experiences such as exclusive events, personalized services, and VIP access to engage customers on a deeper level. For instance, in April 2023, Saks Fifth Avenue expanded Saks Limitless, its exclusive invite-only program for top clients. The program offers members special services and benefits to access luxury fashion, one-of-a-kind merchandise, and exclusive experiences.

Furthermore, the growth of international travel is another major factor driving market growth. Tourists often purchase luxury goods as souvenirs or gifts while traveling abroad, leading to a boost in sales for luxury brands with a strong presence in key tourist destinations. Moreover, travel retail, including duty-free shops at airports, has become a significant channel for luxury sales, catering to affluent travelers seeking premium products. In January 2024, Aer Rianta International opened Preloved - Fashion in Full Circle, a new luxury vintage fashion and accessories store at Lisbon Airport. This dedicated retail space aims to boost luxury brand sales through the airport platform. It targets affluent travelers seeking unique items, capitalizing on impulse buying within the travel retail setting.

The digital revolution has transformed the way consumers interact with luxury brands. E-commerce platforms, social media, and digital marketing have become essential tools for reaching a global audience and engaging with customers. Luxury brands are investing heavily in their online presence to enhance customer experience and drive sales. For instance, in August 2023, JD.com and Gucci announced a digital partnership along with the launch of the official Gucci digital flagship store on JD.com. In the current digital landscape, such initiatives enhance accessibility and convenience for consumers seeking luxury goods online.

Market Concentration & Characteristics

The industry shows a medium to high degree of innovation. The luxury products market is increasingly embracing innovation to cater to the evolving tastes and preferences of consumers, particularly the younger generation. This includes adopting cutting-edge technology such as virtual reality to provide virtual fitting rooms, creating unique and personalized experiences, and adopting sustainable practices.

The market is characterized by a low to moderate level of mergers and acquisitions. Companies undergoing mergers and acquisitions are seeking strategic partnerships to enhance their product portfolios, expand their market presence, and leverage each other’s strengths. Moreover, the competitive nature of the market has further encouraged the players to explore synergies, leading to occasional mergers and acquisitions to gain a competitive edge. For instance, in January 2021, LVMH formally announced the completion of its acquisition of Tiffany & Co. This strategic acquisition is intended to enhance LVMH’s presence and market share within the watches and jewelry sector.

The market is subjected to significant regulatory scrutiny due to various factors such as counterfeiting, intellectual property protection, sustainability concerns, and consumer protection. Regulatory bodies worldwide closely monitor the luxury goods industry to ensure compliance with laws and regulations that govern the production, distribution, and marketing of luxury products. In different jurisdictions such as the European Union, the U.S., China, and Japan, there are distinct government agencies such as the European Union Intellectual Property Office (EUIPO), Federal Trade Commission (FTC), the Consumer Product Safety Commission (CPSC), and U.S. Customs and Border Protection responsible for maintaining a well-regulated marketplace with fair competition and consumer protection measures tailored to each country’s regulatory framework.

The luxury products market faces significant competition from its substitutes. Luxury goods are often associated with exclusivity, high quality, and prestige. However, in the market, there are various substitutes that consumers may consider when making purchasing decisions. These substitutes can range from counterfeit brands offering similar products at lower prices to entirely different product categories that fulfill similar needs or desires for consumers.

The level of end use concentration in the market is notably high due to the nature of luxury goods being targeted toward a niche segment of affluent individuals with high disposable incomes. These end uses are often brand-conscious and seek products that not only signify status and wealth but also reflect their style and preferences.

Product Insights

The apparel segment accounted for a share of 25.9% of the global revenue in 2024. This large share can be attributed to factors such as product innovation & exclusivity, evolving fashion trends, and engaging marketing initiatives. For instance, in January 2024, Louis Vuitton introduced a series of pop-up stores and activations to showcase the Spring-Summer 2024 Men’s Collection in various cities such as Paris, Seoul, Miami, London, Los Angeles, and New York City. Furthermore, the digitalization of the fashion industry has significantly contributed to the growth of luxury apparel. With the rise of e-commerce platforms, luxury brands are available to a wider audience globally. In addition, social media platforms have become essential marketing tools for luxury brands, allowing them to engage with their customers and build brand awareness.

The handbags segment is projected to grow at the fastest CAGR from 2025 to 2030. Luxury and premium handbags have evolved beyond their utilitarian role, transforming into symbols of status and personal style. The growing purchasing power of consumers, particularly in emerging economies, combined with aspirational buying tendencies, is propelling the desire for high-end handbags. Notably, alongside well-established luxury brands, emerging designers and niche players are entering the market, introducing distinctive designs and craftsmanship. These brands cater to consumers seeking exclusivity and individuality, thus enriching the diversity of the luxury handbag market.

End Use Insights

The women’s segment dominated the global market in 2024. A significant factor driving the women’s segment is the increasing wealth and financial independence of women globally. For instance, the Forbes’ 2023 ranking of the planet’s richest people featured 337 billionaire women, up from 327 in 2022. This growing wealth creates a significant market for luxury goods targeted at women. Furthermore, women are growing more conscious about their style and appearance. This trend has led to an increased demand for luxury fashion items that allow them to express their unique identity and sense of style. The rise of social media platforms has also contributed to this trend, as more women look to these platforms for inspiration and to showcase their style.

The men’s segment is projected to grow at the fastest CAGR from 2025 to 2030. One of the primary factors driving the market is the increasing disposable income of the male population. As men’s earning power grows, they are more likely to invest in high-end, luxury items. Moreover, men’s attitudes towards fashion and luxury have evolved significantly over the years. This shift in consumer preferences has led to a surge in demand for premium and luxury products designed exclusively for men. Brands are capitalizing on this trend by offering a wide range of luxury goods that cater to the discerning tastes of male consumers. For instance, in March 2024, Dior introduced its latest men’s capsule collection, the Cannage capsule, which embraces a more relaxed and casual approach to men’s fashion while also paying tribute to the iconic “cannage” pattern of the fashion house.

Regional Insights

The North America luxury goods market accounted for a significant market revenue share in 2024. North America boasts a large population of fashion-conscious consumers with higher purchasing power who actively follow market trends for personal accessories such as clothing, handbags, watches, and jewelry. Social media influencers play a significant role in promoting new luxury collections from businesses to attract customers and influence their buying decisions. Consumers are attracted to luxury items due to their unique designs, durability, comfort, and aesthetics, which distinguish them from fast fashion accessories. North America has a robust network of both single-brand and multi-brand stores in airports and shopping centers, providing affluent customers with a wide range of product options from local and international luxury brands.

U.S. Luxury Goods Market Trends

The luxury goods market in the U.S. is projected to grow at a significant CAGR from 2025 to 2030. The growth in the number of high-net-worth individuals has led luxury brands to expand their presence in the U.S. One such example is the Italian fashion house Gucci, which has been actively opening and refurbishing stores across the U.S. In May 2022, Gucci signed a lease for a 10,000-square-foot space at the American Dream mall in New Jersey.

Europe Luxury Goods Market Trends

The luxury goods market in Europe is projected to grow at a significant CAGR from 2025 to 2030, owing to the increasing number of high-net-worth individuals in key markets of Scandinavia and Western Europe. Furthermore, the improvement of economic indicators in Eastern European countries such as Poland and Romania is projected to open new market avenues for the industry participants over the next few years.

Asia Pacific Luxury Goods Market Trends

The Asia Pacific dominated the luxury goods market with a revenue share of 39.9% in 2024. An increase in the number of high-net-worth individuals is a key factor driving the market growth. According to the World Population Review of 2024, China holds the second position globally with 406 billionaires, while India ranks third with 200 billionaires. These figures highlight the Asia Pacific region as having the highest concentration of high-net-worth individuals compared to other areas worldwide. Furthermore, luxury brands have been expanding their retail presence in Asian markets by opening new flagship stores in major cities and investing in local partnerships and collaborations with local designers and brands. By establishing a strong retail presence, these brands aim to build a loyal customer base and increase their brand recognition in the region. In August 2023, Gioia, a high-end leather goods brand, inaugurated its main store in Mumbai, India, showcasing a variety of premium handbags and accessories.

The luxury goods market in China accounted for the highest revenue share in 2024. increasing disposable income, the aspirational demands of younger consumers influenced by social media, and effective influencer marketing. A report from China's National Bureau of Statistics in October 2022 indicated a substantial presence of online influencers, with approximately 10.1 million active Key Opinion Leaders (KOLs) and Key Opinion Consumers (KOCs) identified between September 2021 and October 2022. However, recent tariffs imposed by the United States have created short-term ambiguity in the Chinese luxury goods industry, potentially affecting expenses and consumer attitudes, as seen in greater price awareness and scrutiny of brand value. Nevertheless, the long-term prospects for this market are positive, supported by consistent demand from younger consumers and government policies encouraging domestic spending, indicating that adaptable brands are well-placed for continued growth.

Key Luxury Goods Company Insights

Some of the key companies operating in the luxury goods industry include LVMH Group, Chanel LTD, Burberry Group PLC, Prada S.p.A, Kering SA, Rolex SA, Richemont S.A., Estée Lauder Companies Inc., L'Oréal S.A., and others.

• LVMH Groupis a French multinational luxury goods conglomerate that owns a vast portfolio of prestigious brands across different sectors, including fashion and leather goods, perfumes and cosmetics, watches and jewelry, wines and spirits, and selective retailing. Some of the well-known brands under LVMH include Louis Vuitton, Dior, Givenchy, Fendi, Bulgari, TAG Heuer, Sephora, Moët & Chandon, Dom Pérignon, and many others.

• Kering is one of the major players in the luxury goods industry based in France. The company focuses on fashion and leather goods, owning iconic brands such as Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, and Brioni. Kering is known for its commitment to sustainability and ethical practices in the luxury industry.

Recent Developments

• In January 2024, Miu Miu (part of Prada) launched its fourth limited edition collection of upcycled bags, named “Miu Miu Upcycled: Denim and Patch” bags. This initiative highlights the brand's ongoing commitment to upcycling and sustainable practices within its product offerings.

• In September 2023, Richemont SA launched a new beauty division named Laboratoire de Haute Parfumerie et Beauté. This division will focus on the development and broader reach of high-end perfumes and beauty products.

• In September 2023, Ralph Lauren expanded its presence in Canada by launching its first luxury brick-and-mortar store and a dedicated e-commerce platform. This expansion provides Canadian consumers with direct access to the brand's premium offerings via both physical and digital channels.

• In June 2023, Kering Beauté (Kering) announced the signing of an agreement to acquire Creed, a high-end heritage fragrance house. This acquisition is anticipated to contribute to the growth of the luxury goods industry by expanding Kering's portfolio into the premium fragrance segment and leveraging Creed's established brand equity to reach a wider consumer base.

Luxury Goods Market Report Scope

Global Luxury Goods Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels as well as provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the luxury goods market report on the basis of product, end use, and region:

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Apparel

  • Watches

  • Jewelry

  • Handbags

  • Perfumes & Cosmetics

  • Footwear

  • Others

• End Use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Men

  • Women

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE